Balancing Income and Expenses

The NC 401(k)/457 transfer option allows you to convert part or all of the funds in your NC 401(k) or 457 account into monthly income payments. Thus, if your monthly income is not sufficient to cover your monthly expenses, you may choose to transfer an amount that will provide a monthly benefit large enough to bring your finances back into balance. If you do not have sufficient funds in your NC 401(k) or 457 account to cover emergencies and provide the additional income you need to meet your expenses, then you should consider working longer or finding ways to lower your expenses.

If you wish to leave money to multiple heirs after you die, you should keep enough in your NC 401(k) or 457 account or another savings account to fund this inheritance. If you have just one heir such as a spouse or special-needs child, you may wish to name this person as your joint survivor for the transfer benefit to provide a recurring monthly income after your death.